Updates About Jobs

Small businesses across Michigan are feeling the pressure of rising health care costs, with many reporting a direct impact on their ability to expand and bring on new employees. In a recent survey conducted by the Small Business Association of Michigan (SBAM), over three-quarters of respondents said the cost of offering health insurance has made hiring more difficult. More than half have already scaled back or eliminated benefits, and 83% said the expense is eating into resources they would otherwise invest in growing their business.

Even so, most small business owners still see health benefits as essential for keeping employees satisfied and onboard, with 91% calling them a key part of employee retention. Yet, affordability remains a major hurdle. Nearly 70% of employers reported that their health insurance premiums increased by more than 10% in the past year. Cost drivers such as hospital fees, prescription drug prices, and administrative overhead are pushing premiums higher, while only a small share of employers—about 10%—are negotiating directly with insurers. Many rely on high-deductible plans or higher employee contributions to make do. Industry leaders continue to urge a systemwide response to tackle rising costs, prevent further strain on local shops, and maintain health care coverage for small business employees.

Governor Gretchen Whitmer recently delivered her latest “Road Ahead” address in Flint, where she outlined a bold plan to position Michigan as a national leader in semiconductor manufacturing. With the critical role that chips play in everything from smartphones to national defense systems, this industry offers a long-term source of stability for Michigan’s economy.

Components of her plan include securing a semiconductor fabrication facility, commonly referred to as a “fab,” by the end of her term, and investing in skilled, lucrative jobs for Michiganders. Through these efforts, she hopes to attract other large manufacturing projects and eventually establish a complete semiconductor manufacturing ecosystem within the state. With existing investments from companies like SK Siltron and Hemlock Semiconductor already contributing to the state’s chip supply chain, the Governor sees a unique opportunity for Michigan to become a central hub in this high-tech sector.

Michigan’s seasonally adjusted unemployment rate inched up to 5.4% this February, a 0.1 percentage point increase from January, according to the Department of Technology, Management, and Budget (DTMB). While total employment grew by 2,000 jobs, the number of unemployed individuals rose by 6,000, contributing to the uptick. The state’s labor force and payroll jobs have expanded in early 2025, with manufacturing adding 7,000 jobs after months of decline. However, private education, health services, and leisure and hospitality sectors each saw job losses of around 3,000. Michigan’s unemployment rate remains above the national average of 4.1%.